1. What Is Churn Rate?

Churn rate measures the percentage of customers who stop using your product or service during a given time period. It's a key metric for understanding customer retention and business health.

2. How the Calculator Works

The calculator uses the standard churn rate formula:

Where:

• Start Customers — Number of customers at beginning of period
• End Customers — Number of customers at end of period
• New Customers — Customers acquired during the period

Explanation: The formula accounts for both customer losses and gains during the measurement period to give an accurate churn percentage.

3. Importance of Churn Rate

Details: Churn rate is critical for assessing customer satisfaction, product-market fit, and business sustainability. Lower churn rates typically indicate better customer retention and business health.

4. Using the Calculator

Tips: Enter the number of customers at start and end of your measurement period, plus any new customers acquired during that time. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a good churn rate?
A: It varies by industry, but generally under 5-7% monthly is good for SaaS businesses. Enterprise companies often aim for under 1% monthly.

Q2: Should I measure churn by count or revenue?
A: Both are valuable. Customer count churn shows user retention, while revenue churn shows financial impact.

Q3: How often should I calculate churn rate?
A: Monthly is standard, but weekly can help spot trends faster in high-velocity businesses.

Q4: What's the difference between gross and net churn?
A: Gross churn looks only at lost customers, while net churn accounts for both losses and new additions.

Q5: Can churn rate be negative?
A: Yes, if you gain more customers than you lose, resulting in negative churn (which is excellent).